The bill amends the Transportation Code to enhance the powers of regional transportation authorities by introducing a new General Mobility Program. Under this program, a unit of election governed by a subregional board can enter into an agreement to allocate up to 25 percent of the sales and use tax revenue for various mobility projects, including the construction and maintenance of sidewalks, trails, and roads, as well as traffic control improvements and drainage measures. The bill also stipulates that the unit of election must provide an annual list of intended projects and outlines the distribution of funds, with 50 percent available at the start of the fiscal year and the remaining 50 percent on a reimbursement basis. Any unused funds must be directed towards paying down outstanding debt secured by the sales and use tax.

Additionally, the bill modifies existing provisions regarding the pledging of revenue for bond security, allowing authorities to pledge not more than 75 percent of the revenue from imposed taxes. It also introduces a new section that restricts the issuance of financial obligations by the authority upon receiving a notice of election, ensuring that such actions do not increase the financial obligations of the unit of election. The bill includes a provision that exempts certain existing tax pledges from the new revenue pledging rules, maintaining the previous legal framework for those authorities. The act is set to take effect 91 days after the legislative session concludes.

Statutes affected:
Introduced: Transportation Code 452.357, Transportation Code 452.358, Transportation Code 452.651 (Transportation Code 452)